Business Irish

Wednesday 21 February 2018

Dankse Bank reports smaller pre-tax loss

Danske Bank is withdrawing from retail banking in Ireland
Danske Bank is withdrawing from retail banking in Ireland

Danske Bank reported a smaller-than-expected pretax loss on higher income from its insurance business and fee income from increased customer activity and said it expected net profit of more than 14 billion Danish crowns in 2015.

Formerly National Irish Bank, it operates a corporate banking service here.

The result of its non-core Ireland exposures, was a loss before tax of DKK 1.5 billion (€201.9m), an improvement of DKK 0.3 billion (€36.3m) from 2013.

"The key item of relevance for Danske in Ireland is the impairment line, which was down from DKK1,386m to DKK733m in FY14," said Goodbody Stockbrokers in a note.

"However, we note the Q4 charge was DKK482m, from a DKK83 run rate in the prior three quarters. The charges related mainly to a management add-on to cover an expected," it added.

Overall, fourth-quarter pretax loss of 5.3 billion Danish crowns was hit by a 9 billion crown writedown announced in December.

Analysts had expected a pretax loss of 5.07 billion crowns.

Denmark's largest bank by market capitalisation said it would pay a dividend of 5.5 Danish crowns per share, higher than the 5.33 crowns per share expected by analysts, and would launch a 5 billion crown share buy-back programme.

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